Table of Contents
Introduction
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- Definition
- Abbreviations
Executive Summary
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- The market
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- Figure 1: Mobile phone subscriptions forecast, by value, 2006-16
- Market factors
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- Figure 2: Agreement with the statement ‘As long as I can make calls and texts, I don’t care about other features or functions’, by age, December 2010-11
- Companies, brands and innovation
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- Figure 3: Mobile network provider market share by volume, 2008-11
- The consumer
- Mobile network usage
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- Figure 4: Mobile connections and average monthly revenue per user (ARPU), by connection type, 2005-10
- Figure 5: Message volume from mobile phones, by message types, 2005-10
- Figure 6: Online activities performed on a smartphone in the last three months, January 2012
- Consumer attitudes to mobile network providers
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- Figure 7: Consumer attitudes to mobile network providers and mobile wallets, January 2012
- Figure 8: Reasons for switching mobile network provider, January 2012
- Consumer attitudes to mobile wallets
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- Figure 9: Reasons for disliking the idea of mobile wallets, January 2012
- What we think
Issues in the Market
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- Who will dominate the mobile wallet market?
- What needs to be done to get UK consumers ready for mobile wallets?
- What can mobile network providers specifically do to increase consumer confidence in their version of mobile wallet services?
- To what extent will the adoption of smartphones and data plans affect SMS usage in the UK?
Future Opportunities
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- Trend: Prove It
- Trend: Moral Brands
Internal Market Environment
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- Key points
- The rise of smartphone ownership
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- Figure 10: Personal mobile phone ownership, 2007-11
- Figure 11: Mobile phone ownership by platform provider, January 2012
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- Figure 12: Agreement with the statement ‘As long as I can make calls and texts, I don’t care about other features or functions’, by age, December 2010-11
- Consumers are holding on to their handsets for longer
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- Figure 13: Frequency of upgrading the mobile phone, 2010-11
- Figure 14: Length of ownership of current primary handset, January 2011-12
- Ofcom’s 4G auction delayed until end of 2012
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- Figure 15: Theoretical download speeds of mobile data technologies in the UK, 1993-2011
- Using mobiles to connect to the internet
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- Figure 16: Using a smartphone to access the internet in the past six months, February 2011-January 2012
- Figure 17: Using a smartphone to access the internet in the past six months, by age, January 2012
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- Figure 18: Using a smartphone to access the internet in the past six months, by region, January 2012
- Figure 19: Using a smartphone to access the internet in the past six months, by annual household income, January 2012
- Mobile data traffic explosion
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- Figure 20: Cisco’s consumer mobile data forecast in the UK, 2010-15
Broader Market Environment
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- Key points
- Uncertain economic climate is a threat for network operators
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- Figure 21: GDP quarterly percentage change, Q1 2004-Q4 2011
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- Figure 22: GFK NOP Consumer Confidence Index, February 1988-2012
- One million jobless 16-24-year-olds will put financial pressure on network providers
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- Figure 23: Seasonally adjusted unemployment rate, by age, October-December 1992-2011
- Aging population could benefit network providers
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- Figure 24: Trends in the age structure of the UK population, 2006-16
Who’s Innovating?
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- Key points
- Mobile wallet, with or without the network operators
- Value-added services to attract mobile subscribers
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- Figure 25: Orange Quick Tap Treats poster, February 2012
- New contract options to boost smartphone upgrades
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- Figure 26: Total cost of O2’s iPhone 4S 16GB contracts over 12 months, by contract type, February 2012
- Buffet pricing
- Multiple personas on one phone
- China Telecom joins the UK mobile market
Market Size and Forecast
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- Key points
- Increase in smartphones and data plans contributes to revenue growth
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- Figure 27: Volume of mobile phone subscriptions, 2006-16
- Figure 28: Value of mobile phone subscriptions, 2006-16
- Figure 29: Volume of mobile phone subscriptions, by payment type, 2006-16
- Forecasts
- Mobile phone subscriptions
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- Figure 30: Mobile phone subscriptions forecast, by volume, 2006-16
- Figure 31: Mobile phone subscriptions forecast, by value, 2006-16
- Mobile phone subscriptions by contract types
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- Figure 32: Pre-paid mobile phone subscriptions forecast, by volume, 2006-16
- Figure 33: Contract mobile phone subscriptions forecast, by volume, 2006-16
Market Share
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- Key points
- Everything Everywhere market share falls post-merger
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- Figure 34: Mobile network provider market share by volume, 2008-11
- O2 struggles to make further gains
- Is customer service enough to hold up Vodafone’s market share?
- MVNOs gain market share as consumers become more frugal
Companies and Products
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- O2
- Company overview
- Product range
- Financial performance
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- Figure 35: Key financial data for Telefónica UK limited, 2010-11
- Advertising and promotion
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- Figure 36: O2’s Advertising expenditure, 2007-11
- Business strategy and future objectives
- Everything Everywhere
- Company overview
- Product range
- Financial performance
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- Figure 37: Key financial data for Everything Everywhere Limited, 2010-11
- Advertising and promotion
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- Figure 38: Everything Everywhere’s advertising spend, 2007-11
- Business strategy and future objectives
- Three UK
- Company overview
- Product range
- Financial performance
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- Figure 39: Key financial data for Hutchison 3G UK Limited, 2009-10
- Advertising and promotion
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- Figure 40: Three UK’s Advertising expenditure, 2007-11
- Business strategy and future objectives
- Vodafone UK Limited
- Company overview
- Product range
- Financial performance
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- Figure 41: Key financial data for Vodafone UK, 2010-11
- Advertising and promotion
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- Figure 42: Vodafone UK’s Advertising expenditure, 2007-11
- Business strategy/future objectives
Brand Research
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- Brand map
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- Figure 43: Attitudes towards and usage of brands in the mobile network providers sector, November 2011
- Correspondence analysis
- Brand attitudes
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- Figure 44: Attitudes by mobile network provider brand, November 2011
- Brand personality
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- Figure 45: Mobile network providers brand personality – macro image, November 2011
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- Figure 46: Mobile network provider brand personality – micro image, November 2011
- Brand experience
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- Figure 47: Mobile Network providers brand usage, November 2011
- Figure 48: Satisfaction with various mobile network provider brands, November 2011
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- Figure 49: Consideration of mobile network provider brands, November 2011
- Figure 50: Consumer perceptions of current mobile network providers’ brand performance, November 2011
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- Figure 51: Mobile network providers brand recommendation – Net Promoter Score, November 2011
- Brand index
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- Figure 52: Mobile network providers brand index, November 2011
- Figure 53: Mobile network providers brand index vs. recommendation, November 2011
- Target group analysis
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- Figure 54: Target groups, November 2011
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- Figure 55: Mobile network providers brand usage, by target groups, November 2011
- Group One – Conformists
- Group Two – Simply the Best
- Group Three – Shelf Stalkers
- Group Four – Habitual Shoppers
- Group Five – Individualists
Mobile Network Usage
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- Key points
- Monthly spending with network operators
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- Figure 56: Mobile connections and average monthly revenue per user (ARPU), by connection type, 2005-10
- Figure 57: Monthly payment tier for mobile phone, by payment plan, January 2012
- Inclusive options in mobile phone tariffs
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- Figure 58: Options included in the current service package, 2011
- Message volume still growing
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- Figure 59: Message volume from mobile phones, by message types, 2005-10
- Mobile call volumes on the rise
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- Figure 60: Call volumes from mobile phones, by call types, 2005-10
- Figure 61: Telephone calls from home, 2011
- Three customers more likely to be mobile surfers
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- Figure 62: Ownership of smartphones and using a smartphone to access the internet in the past six months, by mobile network provider of primary handset, January 2012
- Online activities on a smartphone
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- Figure 63: Online activities performed on a smartphone in the last three months, January 2012
Consumer Attitudes to Mobile Network Providers
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- Key points
- Switching to a different mobile network operator
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- Figure 64: Selected consumer attitudes to mobile network providers, January 2012
- Younger consumers more likely to have made the switch
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- Figure 65: Consumers who have switched mobile network providers in the past twelve months, by age, January 2012
- Reasons for switching mobile network providers
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- Figure 66: Reasons for switching mobile network providers, January 2012
- Is one reason enough to make the switch?
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- Figure 67: Number of choices selected as reasons for switching mobile network operator, January 2012
- Satisfaction with existing operators
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- Figure 68: Satisfaction with existing mobile network operator’s service, January 2012
- Inertia in switching network operators
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- Figure 69: Intent to switch operators, January 2012
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- Figure 70: Intent to switch operators among consumers who are very unsatisfied with their existing network operator, January 2012
- Which network operators will benefit from dissatisfied consumers?
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- Figure 71: preferred network operator for consumers likely to switch, January 2012
Consumer Attitudes to Mobile Wallets
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- Key points
- How consumers feel about mobile wallet services
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- Figure 72: Selected consumer attitudes to mobile wallets, January 2012
- Subdued enthusiasm towards mobile network-issued bank cards
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- Figure 73: Agreement with ‘I would use a debit or credit card issued by my mobile network provider’, by age, January 2012
- Personal data in exchange for bespoke discounts
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- Figure 74: Agreement with ‘I would exchange personal information (such as my clothing size, where I like to shop, etc.) with my network provider for discounts/vouchers to places I like to shop’, by age, January 2012
- Consolidation of loyalty schemes on smartphones
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- Figure 75: Agreement with ‘I am prepared to combine various loyalty programmes on my mobile instead of carrying several cards’, by age, January 2012
- Using mobile phones to pay for purchases
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- Figure 76: Agreement with ‘I don’t like the idea of using my mobile phone as a debit/credit card to pay for purchases in-store (eg as a contactless payment device)’, by age, January 2012
- Fraud and security are biggest concerns over mobile wallets
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- Figure 77: Reasons for disliking the idea of mobile wallets, January 2012
- Are mobile network providers trusted to deliver mobile wallet services?
Appendix – Internal Market Environment
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- Figure 78: Personally own a mobile phone, 2007-11
- Figure 79: Personally own a mobile phone, 2007-11
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- Figure 80: Telephone calls from home by demographics, 2011
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- Figure 81: Methods of accessing the internet in the past six months, January 2012
- Figure 82: Methods of accessing the internet in the past six months, by demographics, January 2012
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- Figure 83: Methods of accessing the internet in the past six months, by mobile phone network provider for primary mobile handset, January 2012
- Figure 84: Methods of accessing the internet in the past six months, by mobile phone contract type for primary mobile handset, January 2012
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Appendix – Brand Research
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- Figure 85: Brand usage, November 2011
- Figure 86: Brand commitment, November 2011
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- Figure 87: Brand momentum, November 2011
- Figure 88: Brand diversity, November 2011
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- Figure 89: Brand satisfaction, November 2011
- Figure 90: Brand recommendation, November 2011
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- Figure 91: Brand attitude, November 2011
- Figure 92: Brand image – macro image, November 2011
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- Figure 93: Brand image – micro image, November 2011
- Figure 94: Profile of target groups by demographic, November 2011
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- Figure 95: Psychographic segmentation by target group, November 2011
- Figure 96: Brand usage by target group, November 2011
- Brand index
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- Figure 97: Brand index, November 2011
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Appendix – Mobile Network Usage
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- Figure 98: Mobile phone network provider for primary mobile handset, January 2012
- Figure 99: Mobile phone network provider for primary mobile handset, by demographics, January 2012
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- Figure 100: Mobile phone contract type for primary mobile handset, by mobile phone network provider for primary mobile handset, January 2012
- Figure 101: Ownership of mobile phone and portable media player, by mobile phone network provider for primary mobile handset, January 2012
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- Figure 102: Mobile phone contract type for primary mobile handset, January 2012
- Figure 103: Ownership of mobile phone and portable media player, by mobile phone contract type for primary mobile handset, January 2012
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- Figure 104: Mobile phone contract type for primary mobile handset, by demographics, January 2012
- Figure 105: Telephone calls from home, by demographics, 2011
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- Figure 106: Options included in the current service package, 2011
- Figure 107: Online activities performed in the last three months, January 2012
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- Figure 108: Other online activities performed in the last three months, January 2012
- Figure 109: Most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
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- Figure 110: Next most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
- Figure 111: Most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
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- Figure 112: Next most popular online activities performed on a smartphone in the last three months, by demographics, January 2012
- Figure 113: Other online activities performed on a smartphone in the last three months, by demographics, January 2012
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- Figure 114: Online activities performed in the last three months, by mobile phone network provider for primary mobile handset, January 2012
- Figure 115: Online activities performed in the last three months, by mobile phone contract type for primary mobile handset, January 2012
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- Figure 116: Other online activities performed in the last three months, by mobile phone network provider for primary mobile handset, January 2012
- Figure 117: Other online activities performed in the last three months, by mobile phone contract type for primary mobile handset, January 2012
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Appendix – Consumer Attitudes to Mobile Network Providers
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- Figure 118: Attitudes towards mobile network providers, January 2012
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- Figure 119: Most popular attitudes towards mobile network providers, by demographics, January 2012
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- Figure 120: Next most popular attitudes towards mobile network providers, by demographics, January 2012
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- Figure 121: Attitudes towards mobile network providers, by mobile phone network provider for primary mobile handset, January 2012
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- Figure 122: Attitudes towards mobile network providers, by most popular ownership of mobile phone and portable media player, January 2012
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- Figure 123: Attitudes towards mobile network providers, by next most popular ownership of mobile phone and portable media player, January 2012
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- Figure 124: Reasons for switching mobile network providers, January 2012
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- Figure 125: Reasons for switching mobile network providers, by demographics, January 2012
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Appendix – Consumer Attitudes to Mobile Wallets
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- Figure 126: Reasons for disliking the idea of mobile wallets, January 2012
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- Figure 127: Most popular reasons for disliking the idea of mobile wallets, by demographics, January 2012
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- Figure 128: Next most popular reasons for disliking the idea of mobile wallets, by demographics, January 2012
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